Real Sage Advice

A Reason for Seniors to Move

How do you know when it's time to talk with Mom and Dad about no longer driving?  I don't know about you, but if someone told me they were taking away my car keys, I'd be lost. In Minnesota we have very limited public transportation, so if I lived in the suburbs I don't even know how I'd get to the Pharmacy.

I recently worked with a gentlemen who was no longer able to drive, and this was his primary reason for moving.  He wanted to live in an indpedent senior housing apartment that had transportation services so he could still get out and about without having to learn how to use the bus system.

It's important to note this client was young, healthy and vibrant.  Not being able to drive isn't about age, it's about ability.  Age-by itself-is not a good predictor of driving ability. Older drivers are more likely to obey speed limits, wear safety belts, and take fewer risks.

So, how do you know it's time to talk with mom, dad or grandparents about no more driving? Here are some Warning Signs that driving is getting more challenging for the older person:

• Abrupt lane changes, breaking or acceleration (This is my husband!)
• Slow reaction to environmental changes
• More close calls or accidents
• Failure to use signal lights or leaving signal lights on (I've done this)
• Drifting into other lanes  (my husband does this despite my complaining)
• Appears fearful, overly cautious
• Has trouble reading road signs
• Believes honking of other drives is not due to them
• Misses exits, turns (I've done this--a lot)
• Difficulty operating the car due to limited range of motion

(Jan Green, Miss Daisy's Driving, the CSA Journal issue 34).

Some transportation resources for seniors:

• Local Block Nurse Programs
• Store to Door

Aging Issues Should be on the Front Page

It's no secret the Minneapolis Star and Tribune has been doing some re-organizing to address the drop in circulation.  However, they made a HUGE mistake when they decided to reassign Warren Wolfe and take him away from his columns that address aging issues. I met Warren at a co-housing seminar about 2 years ago. I was so impressed by his warmth and passion for aging issues. He's one of my favorite columnists.

Changing Aging suggests pushing aging issues to the "back page" is akin to ageism!

Dangers of Summer

Spring in Minnesota has been simply fabulous this year.  The weather has been, well, perfect.  We've even had a couple of summer-like days already. As the days continue to get longer and the mercury rises, we can all help keep an extra eye on our elderly neighbors and relatives.

• If you have elderly relatives or neighbors, you can help them protect themselves from heat-related stress:
• Visit older adults at risk at least twice a Day and watch them for signs of heat exhaustion or heat stroke.
• Take them to air-conditioned locations if they have transportation problems
• Make sure older adults have access to an electric fan whenever possible.

Wheels of Life

   

Seniors: Make Sure You Know What that Contract Says!

Yesterday I told you about Claire, who purchased a unit in a senior cooperative before she quite had all her ducks in a row.  On a whim, she went to visit a senior cooperative in St. Louis Park, Minnesota. She fell in love with one of the units and purchased it that day!

She wrote the purchase agreement (actually called a subscription agreement with cooperatives) with the marketing representative that worked for the seller. Claire didn't have anyone representing HER during that process. There was no one there making sure she understood the finer points of the contract to make sure she was comfortable with it.  In fact, when I met her, she didn't really even have an understanding of what she had signed! By the time we were done reviewing it, there were about $2,000 worth of fees she hadn't planned on. 

Buying a unit in a senior housing community can be overwhelming.  Remember that REALTORs do this every day. Find one you trust to be there when you're ready to purchase a condo or cooperative so you have someone at your side looking out for your best interests!

Seniors: An Important Mistake to Avoid When Moving.

This last week I met Claire (name has been changed), a 72 year old more full of life than anyone I had ever met. Her reason for moving is because she hasn't felt safe in her big home alone since her husband died one year ago. On a whim, she went to visit a senior cooperative in St. Louis Park, Minnesota. She fell in love with one of the units and purchased it that day!

In Minnesota, when you purchase a condominium or buy into a cooperative, you have a 10 day right of recession period in which you can cancel and have your earnest money returned to you. After signing the purchase agreement she called me to help her get her house on the market. When we looked at what her house would sell for, what it would cost to live in the Cooperative, and her monthly income, we discovered she would likely run out of money before she ran out of month. 

We spent the next day looking at a some very nice, less expensive senior cooperatives in nearby cities. Because they were less expensive, the buildings were a little older, and the apartments not as big, she had a very hard time imagining herself living there.  No kidding! If I planned on buying a million dollar house and then had to settle for a $500,000 house, I'd be disappointed too!

Know what you can afford before you spend your money!

I would have been able to save Claire a lot of heartache if she had called me BEFORE she signed the purchase agreement (or even before she had gone to look at housing that she really couldn't afford).

Follow this move plan so you don't have the heartache of having to "settle" for something you can afford:

• Steps 1 & 2 of Moving for Seniors
• Step 3 of Moving for Seniors - Don't Procrastinate
• Step 4 - Can You Afford the Home You Want?

Planning for Long Term Care

I received an email about the long term care post from Eileen Tell, Sr. Vice President,  at the Long Term Care Group, Inc. From her Bio, it's a pretty safe assumption that she can educate us on long term care insurance!   In her letter she corrected a statement I said in my earlier post about 4-5% of our elderly needing long term care.  I "said" long term care, but meant "nursing home". It has since been corrected.

Eileen, my gratitude for your insightful email. Here it is:

Thanks for mentioning the HHS website www.longtermcare.gov on your blog. It is such a critical issue and, while awareness is growing, we still have a long way to go. The good news is that so far nearly 700,000 people have received the government's "Own Your Future" information guide on planning for long term care needs. We just concluded focus groups with consumers - all of whom found the guide extremely helpful and an easy "first bite" into this topic.

I did want to point out one inaccuracy in the opening statement of your piece: Remember only 4-5% of our elderly need long term care.

This is not correct. That figure refers to the percent of people at any one time who reside in a nursing home (elderly or not). Obviously, the vast majority of long term care is provided at home and in other care settings like adult day care and assisted living. So the 4-5% figure would not capture that. Also, that is the prevalence of nursing home need at a single point in time, not the lifetime risk of every needing long term care. Basically, when I turn 65, there is a 60% chance that, at some point in my life, I will need some type and amount of long term care. So NOT planning for something with such a high probability of occurring (and the chance of it being financially catastrophic) is foolish; we would never take that kind of chance with our car insurance, home insurance or similar.

And even younger people need long term care; at present (again a prevalence figure not incidence), of the more than 13 million Americans receiving long term care in all settings, about 40% of them are working age adults 18-64 years old. Another reason why the 4-5% figure does not accurately reflect the lifetime risk nor the financial devastation of needing long term care.

I hope this information is helpful and would be happy to chat more if it is helpful. Thanks again for providing the useful link to people.

Get a copy of the Own Your Future Handbook Eileen references above.

Real Sage Advice Wins An Award

Every week there is a carnival held for real estate bloggers. While I'm a big fan of the carnival, I don't enter the competition very often because so many of my posts are so loosely tied to the real estate industry.   Well, one article on mine caught their eye.   I received recognition for entering out of hundreds of entries.

THE REAL PAYOFF FOR WORKING WITH SENIORS

I often get "looks" from my real estate agent colleagues when I tell them of my adventures working with seniors. They wonder why I do what I do. Yesterday was a typical day of my work with my senior clients I thought I'd take a minute to share before I go off and do it again today.

Claire is a new client who was referred to me by a past senior client.

I met with Claire at her financial planners office at 8:30 am (Yes, some of us are working before 9:00 am!). Eight days earlier Claire had signed a purchase agreement at a new Twin Cities Senior Cooperative, and signed it without representation. After we had an idea of what kind of money she would net after her house sold, we reveiwed her monthly income. Oh boy. I was very concerned about how tight things would be for her after she moved. I suggested she meet with her financial planner to make sure it was "doable".  After a discussion about how concerning this situation is for Claire, and a suggestion to look at a couple of other housing units before the 10 day right of recission was up, and a few tears, we ended the meeting. I assured Claire that moving and finding an affordable home will happen and that I would call her later in the day.  She hugged me and said "The Good Lord must be looking over me!"  REALTORs don't get paid for meeting with financial planners.

I returned to my office, put a call into the Minneapolis Public Housing Authority (I suspect we could find a program to help Claire pay for housing in a senior community)  and two other cooperatives that were going to be more affordable for Claire. REALTORS don't get paid for doing research for senior clients.

I spoke with the senior Cooperative that Claire had signed the purchase agreement with (actually a subscription agreement) and told them closing would have to be contigent upon the sale of the back up home. We discussed the language already in the contract and what would need to change for this purchase to work. Because I was not the procuring cause in this transaction, I will not get paid for these negotiations or contract amendments.

I spoke with the financial planner again with some new information, and spoke with Claire again. I told her I thought making things work for this particular senior cooperative was a long shot - how all of the stars in the heavens are going to have to line up perfectly for it to work, and because of all the uncertainties  she would endure a lot of unnecessary emotional turmoil. We could go look at a cooperative that would save her $100,000 and I asked her if she could see a little different lifestyle with that kind of money in reserves. Well, she agreed to go look at it with me, but still "has her heart set" on this other Cooperative. REALTORS don't get paid for bringing Senior clients to non-cooperating senior housing developments.

I told Claire she's the boss, if after looking at these other places she still wants to move into this first cooperative, we'll do what we can to make it happen. Then we talked through the possibility of having to hurry up and find a second choice if the "stars don't line up".

So, for about 4 hours yesterday, and a few hours today, I'll spend time doing a lot of things with my client I won't get paid for. But what a rich experience. My payment is being entrusted to help someone who doesn't have anyone else to help her, a financial planner who's trust I've gained, my past client who referred Claire looks like a hero, and I'm better for having experienced it.  I can't put food on the table with this kind of payment, but it fills you up in a way money can't.

P.S. If history repeats itself, and it usually does, you can bet monetary payment will be forthcoming in the way of referrals!

You can read about the event and other winners here at RSS Pieces:

How about Skyhook Theory for Buyers?

Unarmed Robbery- Broker Style

Top Ten Things to Know about Tucson Real Estate - A/C and Evaporative Coolers

Let’s Have a Chat

Ridiculous Article on MSN Today… Why More People Should Rent

Long-Term Care Information

How do you plan for long-term care? It's such a daunting thought.  Just think-increased medical technology and treatments will continue to prolong our body's life. We are indeed living longer. But are we outliving society's ability to deal with aging issues, including health care? 

This doesn't mean you'll end up in a nursing home, Only 4-5% of our elderly land in a nursing home. But, if you want choices about your long term care, it pays to plan! Those that plan, get the best. So plan away!  Get information from the Department of Health and Human Services on planning for long-term care here.

Mother's Day Crossword Puzzle

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